An air of uncertainty prevails among the business community in Kochi Port over the decision of the port management not to renew the lease of port land beyond 2012.

Expressing concern over the move, the Cochin Port Lease Holders Association has approached the Port Trust Chairman with a request to allow the genuine leaseholders to register their leases and carry on their business activities in the port area as always. The leaseholders are worried with the message of the port management that those leaseholders requiring renewal will only be renewed till 2012.

As 2012 is just round the corner, the change in the policy has alarmed the leaseholders as there is no clarity as to what will happen beyond this period. According to the Association, the latest stipulation that the port lands can be leased only on upfront basis is another stumbling block since it becomes incumbent on the prospective lessee to raise huge sum of money to continue or commence business in the port area.

The Association submitted that the earlier practice of allotting land on annual basis would be more business friendly. They were of the view that its members have been associated with the port for several decades and in many cases have been instrumental in the development and growth of the port over the years. The leases of several leaseholders have expired and some are currently being renewed on a short-term basis while some others have been asked to vacate their premises, the Association said.

Revising norms

Meanwhile, sources in the port pointed out that the Shipping Ministry is in the process of revising land allotment and related issues involving major ports, which is likely to make the matters more complex as far as leaseholders in major ports are concerned.

Although, the decision to revise land allotment policy was taken in the light of representations made to the Ministry by Port users and trade bodies seeking simplification of the procedures, the new policy requires approval of the Union Cabinet on such matters in future. However, official communication to this effect is still awaited.

According to the Land Policy Guidelines until January 12, the Board of Trustees at the local port was empowered to allot land on lease basis following the normal procedure up to a period of 30 years. However, the present position stipulates that the allotment of long duration even less than 30 years require approval of the Cabinet.

Besides, such allotments will, in future, be vested with an Empowered Committee consisting of Secretary-Shipping, AS & FA (Shipping), Representative of Department of Expenditure and Representative of Planning Commission, upon finalisation by the Shipping Ministry.

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